Skye Bioscience (SKYE) AI Stock Analysis

• Market Cap: $110.61M
• Dividend Yield: N/A
• Average Volume (3M): 1.58M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.31
• Revenue Growth: N/A
• EPS Growth: 87.22%
• Country: US
• Employees: 16
• Sector: Healthcare
• Sector Strength: 37
• Industry: Biotechnology
• EPS (TTM): -0.28
• Shares Outstanding: 30,984,358
• 10 Day Avg. Volume: 355,237
• 30 Day Avg. Volume: 1,584,128
• PEG Ratio: <0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.01
• Enterprise Value/Market Cap: -414.93
• Enterprise Value/Revenue: 336.83K
• Enterprise Value/Gross Profit: 254.43K
• Enterprise Value/Ebitda: 2.48K
• 1Y Price Target: $17.20
• Price Target Upside: 381.79% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 38 Underperform
• Price Target: ―

Skye Bioscience's overall stock score is primarily hindered by significant financial challenges, including zero revenue and continuous losses. Despite strong earnings call highlights and a substantial cash position, the bearish technical analysis and valuation difficulties weigh heavily on the score.

Positive Factors

Clinical Trials

Management noted that clinical engagement remained robust for the ongoing Phase IIa CBeyond trial and that the three safety reviews conducted by the Data Safety Monitoring Committee had not raised concerns.

Financial Position

The company ended 2024 with $68.4 million in cash, which is expected to fund operations through at least the first quarter of 2027.

Partnerships

The collaboration with Arecor Therapeutics could enable testing higher doses of nimacimab, potentially allowing for once-monthly dosing during future clinical development.

Negative Factors

Competitive Position

Nimacimab has shown limited accumulation in non-human primate brains, no neurological toxicity in preclinical studies, and no neuropsychiatric AEs in more Phase 1 patients than monlunabant.

Data Release

The interim data from the Phase IIa CBeyond trial will no longer be released as initially planned.

Financial Performance

Skye reported a net loss of $9.7 million, which was in line with estimates but still represents a financial loss.

Skye Bioscience Business Overview & Revenue Model

Company Description

Skye Bioscience (SKYE) is a biotechnology company focused on the discovery, development, and commercialization of innovative pharmaceutical products intended to address unmet needs in various therapeutic areas. The company primarily operates in the biopharmaceutical sector, with a core emphasis on ocular diseases. Skye Bioscience is committed to advancing its pipeline of cannabinoid-derived compounds, leveraging its proprietary technologies to develop novel treatments that have the potential to improve patient outcomes.

How the Company Makes Money

Skye Bioscience generates revenue through the development and eventual commercialization of its pharmaceutical products, which are primarily aimed at treating ocular diseases. The company's revenue model is built on the successful advancement of its drug candidates through clinical trials, regulatory approvals, and subsequent market entry. Key revenue streams include potential milestone payments and royalties from partnerships with larger pharmaceutical companies, as well as direct sales of approved products. Strategic collaborations and licensing agreements also play a crucial role in funding research and development activities, which are critical to advancing the company's drug pipeline. However, as of the current data, Skye Bioscience may still be in the pre-revenue stage, focusing on research and development efforts to bring its drug candidates to market.

Skye Bioscience Financial Statement Overview

Summary

Skye Bioscience faces significant financial challenges typical of a biotech firm in its early stages, with zero revenue and consistent losses. Recent financing efforts have improved cash reserves, but the company's long-term success relies on revenue generation and cost management.

Income Statement

Skye Bioscience exhibits significant challenges in its income statement, primarily due to consistently zero revenue and substantial net losses over recent years. The lack of revenue growth and negative profit margins highlight the financial stresses typical in the biotechnology industry, especially for companies in the developmental stage.

Balance Sheet

The balance sheet shows a positive trend with significant growth in stockholders' equity in the latest year, driven by substantial financing activities. However, the company still faces high liabilities relative to its assets, as evidenced by the historical negative equity until the most recent year. The low debt level and increasing cash position are positives, providing some financial stability.

Cash Flow

Cash flow performance is weak, with consistently negative operating and free cash flows. However, the company has managed to secure substantial financing, which has improved its cash position. The free cash flow remains negative, indicating ongoing operational challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	-124.00K	-115.00K	-34.13K	-1.87K
EBITDA	0.00	-13.55M	-12.09M	-7.81M	-6.29M
Net Income	-26.57M	-37.65M	-19.48M	-8.52M	-6.56M
Balance Sheet
Total Assets	72.76M	11.94M	9.11M	9.86M	2.67M
Cash, Cash Equivalents and Short-Term Investments	68.42M	1.26M	1.24M	8.98M	2.47M
Total Debt	455.59K	4.62M	1.98M	2.14M	1.50M
Total Liabilities	4.61M	14.07M	12.12M	3.99M	2.22M
Stockholders Equity	68.15M	-2.13M	-3.01M	5.86M	450.79K
Cash Flow
Free Cash Flow	-26.84M	-13.96M	-12.77M	-6.57M	-6.06M
Operating Cash Flow	-25.24M	-13.95M	-12.74M	-6.47M	-6.05M
Investing Cash Flow	-245.62K	6.60M	5.21M	-90.87K	-7.23K
Financing Cash Flow	83.56M	16.44M	-208.79K	13.08M	6.70M

Skye Bioscience Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKYE, the sentiment is Neutral. The current price of 3.57 is below the 20-day moving average (MA) of 3.94, above the 50-day MA of 3.14, and above the 200-day MA of 3.08, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 48.26 is Neutral, neither overbought nor oversold. The STOCH value of 15.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SKYE.

Skye Bioscience Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CELU	56 Neutral	$78.55M	―	-232.51%	―	138.11%	76.60%
ATHE	56 Neutral	$82.91M	―	-154.88%	―	―	20.25%
Sector *	50 Neutral	AU$2.64B	3.25	-57.47%	2.67%	36.37%	14.48%
MRSN	44 Neutral	$34.15M	―	-505.14%	―	-11.21%	47.20%
OKUR	42 Neutral	$29.86M	―	-70.01%	―	―	71.57%
ATNM	41 Neutral	$50.85M	―	-130.87%	―	-100.00%	30.65%
SKYE	38 Underperform	$110.61M	―	-47.27%	―	―	87.22%

Skye Bioscience Corporate Events

Skye Bioscience Updates Inducement Equity Incentive Plan

On February 24, 2025, Skye Bioscience, Inc.’s Board of Directors approved an Amended and Restated 2024 Inducement Equity Incentive Plan. This plan provides the Administrator with broader authority over equity awards in the event of a Change in Control, allowing for actions such as cancellation, substitution, or replacement with cash incentives, while maintaining most terms from the previous plan.